Kolkata: The government has assured that onion supplies will be sufficient to meet domestic demand in the coming months. To counter the surge in prices
of this seasonal item, the government has begun releasing onions from its buffer stock. The first onion-carrying “Kanda Express” has departed from Nashik for New Delhi, while more than 15 trucks are scheduled to deliver onions to more than 10 destinations. The government said a hybrid logistics model using both railway racks and road transport will be used to transport onions.
Estimates of onion production
Onion production is projected to reach 30.737 million tonnes in 2025-26, roughly equal to last year’s production of 30.767 million tonnes. The government expects ample onion supply in the coming months due to robust production, buffer stocks, and market intervention.
Price stabilisation fund
The government had set a target of procuring 2 lakh tonnes of Rabi onion under the price stabilisation fund for 2026-27. Procurement began on May 15 through NAFED and NCCF, and approximately 1.21 lakh tonnes of onion has been procured so far. For the first time, the Central Warehousing Corporation has been included as the storage agency for the PSF onion buffer.
Festive season approaching
The move comes just ahead of the festive and wedding season, when onion demand typically surges. Retail sales have been initiated at Rs 35 per kg through NCCF and NAFED outlets and mobile vans, as well as Safal and Kendriya Bhandar outlets in Delhi.
Onion prices in the country have seen a sharp increase in the past one month. The all-India average retail price on August 25th was Rs 44.72 per kg, compared to Rs 34.80 per kg on July 25. It means a surge of 28% in one month. On this day a year ago, the average price of onion was Rs 28.67 per kg. On August 25, onions were selling for Rs 60 per kg in Chennai and Kolkata. In Delhi, the price was Rs 55 and in Mumbai, it was Rs 48 per kg.
Kanda Express
Under the ‘Kanda Express’ initiative, approximately 88,000 tons of cargo was transported to 16 cities via 86 railway rakes in 2025-26, while approximately 12,000 tons of cargo was transported to five cities via 14 rakes in 2024-25. Current shipments from Nashik are being sent to Delhi-NCR, as well as to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu, and Amritsar.
The Department of Consumer Affairs monitors daily prices of 41 essential commodities at 579 centers. The department stated that further supplies will be determined based on market conditions, arrivals, and demand. Onion exports during April-June 2026 totaled approximately 3.82 lakh metric tons and the key markets were Malaysia, Sri Lanka, the UAE and Nepal.
